11 – 19 - 1999 E-commerce workshop Slide - 1

Growth of Internet and Web.

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Principles in Successfully Managing E-Business

All e-projects must be aligned with business objectives and improving customer satisfaction should be a key metric in measuring successOperating business decision-makers responsible for bottle-line performance should be responsible for effectively using technology to achieve business results

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What is E-commerce ?

The term electronic commerceelectronic commerce or E-commerce is used to describe doing business over the Internet and has been described as the new economic paradigm.

Electronic commerce is the application of communication and information sharing technologies among trading partners to the pursuit of business objectives.

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Why E-commerce?

Demand: Penetration of Computers in Home.Providing information to customer when they need it.Building customer relationship.New way to for customer to interact with you.

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Dramatic Distribution of SavingsOrders taken with any human intervention.Automatic order confirmation.Direct input into order processing system.Orders taken outside of office hours.

Traditional Internet %Savings

Airline Tkt $8 $1 87%

Bill Paymt $2.22-3.32 $0.65-1.10 67%-71%

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E-commerce Impact on Small Business.

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Technological Infrastructure

Digital Cash.Shopping Cart.Online privacy (security).Electronic checks.Credit Card Purchase.

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E-Commerce IssuesCustomer SupportRelationship with supplier Warehousing & ShippingSolution to their problem.

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Setting-up an E-Business on Web

Building your websiteRegistering your domain nameHosting website with an ISPMarketing your WebsiteBuilding E-businessE-business Example WebsitesE-business Challenges

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Building your Website ?

Using Word '00Using Netscape Composer Other Tools:

FrontPage Net Objects HTML Editors

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Tabnet Inc. has the task of registering Internet domain names.

Three-character suffix specifies type of organization:.com .edu.gov .mil.org .net

Two-character suffix specifies country of origin (outside of U.S.)

Domain Names on the Internet

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Website Hosting

ISP Examples: Media3.Net Mindspring.com Web Hosting

VSP Examples: FreeStore.com Amazon.com - eShopSmartAge.com (for small-biz)

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Marketing your WebsiteAdvertising on the WebTips & TricksPromoting Websites on Search EnginesInternet Business Journal

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Building E-Business Solutions

Online Shopping Carts Secure Access – SSL Credit-Card Processing

• Visa International• MasterCard• Card Service West• Online Giving

Shipping Online Customer Service & Support

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Do-it-Yourself: Examples

ABC Computers.SOHOWeb.net.

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E-Business ModelsBusiness-to-BusinessNet enabling relationships with business partners,

customers and channels external to your organization( includes extranet)

Business-to-CustomerNet enabling relationships with individual consumers or

end-users

Consumer-to-ConsumerE-Auctions, Flea Markets, …

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E-Strategy Challenges

Customer RetentionSticky ServicesPersonalization

Customer ServicesReturnsQuestions

Website OptionsDo-it-yourself GuideHire IT consultantE-business Outsourcing

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Benefits of E-BusinessLow cost of new applications deployment( minimum duplication)Flexibility-easy to adapt to changing business needsScalability e.g., acquisitions integrated easilyImproved time to marketNew technologies and changes in business process easily integrated enterprise wide

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Role of IT“Free market fulfillment”Consultant: Teach and inform Business Units about what they can get from ITDetermine and support enterprise-wide standards

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Technological ChallengesBridge technical infrastructure capabilities and business requirementsEducate clients on new technologiesAssess technical costs and risks in the calculation of ROIParticipate in and drive technology standardsPartner in business process re-engineering

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How to Create e-ApplicationsEasy to use the environment

Small central team controls “ look and feel”Anyone can “post to the Web”E-Pub system used for automated publishing: everything gets posted to the Web

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E-Business ConsultantsIBMH-POthers

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E-Business OutsourcingzShops at Amazon.comFairMarket.comMyShop.comOther Resources

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Listen to the Pros

“The world will only need four or five computers” (source: Tom Watson, Sr., IBM)

“There is absolutely no need for a computer in the home” (source: Ken Olson,DEC)

“640K ought to be enough for anybody” (source: Bill Gates, Microsoft)